Post by Trade Coach on Jul 30, 2017 18:37:01 GMT 1
ROAD MAP TO EXPORTATION OF MODERN SERVICES - Implications for growth strategies
Our dataset can be used by researchers and policymakers to study the growing importance of modern services in the global economy and the role of services exports in the process of structural transformation. Traditional services such as transport, travel or retail still require physical presence; however, they too are gaining from being an integral part of global value chains, and increased tradability due to significantly lower costs enabled by breakthrough technologies, including in fuel efficiency. In addition, the shift to export of modern services has spread across countries at different income levels, making them one of the fastest growing segments of world trade.
Many emerging markets, including China and India, are seeking service-led sources of growth. Service-led growth also offers opportunities for diversification and competitiveness for countries across the development spectrum, particularly to resource-rich and low-income countries. Services now contribute significantly to the productivity of many manufacturing industries-countries need services to develop their manufacturing sectors such as using information and communications technology services to improve production efficiency and lower production cost.
Trade in services offers opportunities for labour reallocation and job creation, and could help address the growing polarization of labour markets. Preliminary evidence suggests that on average, countries that experience higher growth in services exports also experience faster job growth. Services trade has also been more resilient than trade in goods to shocks and financial crisis, and services exports from developing countries have been generally more resilient than those from advanced economies.
A global win-win
These glimpses from our dataset suggest that export of services may be a game- changer, offering an opportunity to sustain global economic integration. For advanced economies, trade in very high-tech services could help them retain some global competitive edge. At the same time, the growing tradability of services can aid the diversification strategy of resource-rich countries and low-income countries. And for many countries, services may offer a pathway to inclusive growth, for instance by offering work opportunities for women.
Our dataset can be used by researchers and policymakers to study the growing importance of modern services in the global economy and the role of services exports in the process of structural transformation. Traditional services such as transport, travel or retail still require physical presence; however, they too are gaining from being an integral part of global value chains, and increased tradability due to significantly lower costs enabled by breakthrough technologies, including in fuel efficiency. In addition, the shift to export of modern services has spread across countries at different income levels, making them one of the fastest growing segments of world trade.
Many emerging markets, including China and India, are seeking service-led sources of growth. Service-led growth also offers opportunities for diversification and competitiveness for countries across the development spectrum, particularly to resource-rich and low-income countries. Services now contribute significantly to the productivity of many manufacturing industries-countries need services to develop their manufacturing sectors such as using information and communications technology services to improve production efficiency and lower production cost.
Trade in services offers opportunities for labour reallocation and job creation, and could help address the growing polarization of labour markets. Preliminary evidence suggests that on average, countries that experience higher growth in services exports also experience faster job growth. Services trade has also been more resilient than trade in goods to shocks and financial crisis, and services exports from developing countries have been generally more resilient than those from advanced economies.
A global win-win
These glimpses from our dataset suggest that export of services may be a game- changer, offering an opportunity to sustain global economic integration. For advanced economies, trade in very high-tech services could help them retain some global competitive edge. At the same time, the growing tradability of services can aid the diversification strategy of resource-rich countries and low-income countries. And for many countries, services may offer a pathway to inclusive growth, for instance by offering work opportunities for women.